| Line 2: |
Line 2: |
| | This is the final lecture of this course. | | This is the final lecture of this course. |
| | | | |
| − | Former MIT Professor Paul Samuelson, one of the best-known American economists, passed away on Sunday. He authored the most widely used college textbook on Economics, which focuses more on Macroeconomics (the big picture) than on Microeconomics (individual firms and markets, and the basis of our course). Samuelson was a disciple of the liberal economist John Maynard Keynes discussed in our Lecture Thirteen, but Samuelson did permit some conservative concepts to be included in his textbook and supported tax cuts during the Kennedy Administration in the early 1960s.
| + | Your Instructor's appearance on the ''Colbert Report'' last week was replayed again by its producers the following Monday evening. Let's consider that in economic terms. This show is funded by advertisements, and the advertisers pay higher amounts depending on how many watch a show. By choosing to rerun this particular show again the following Monday, its producers probably felt it could attract a higher viewership than other shows, and thereby maximize advertising revenue. Alternatively, Stephen Colbert may have liked the high quality of this particular show and chose to replay it for that reason, or perhaps he chose it for its educational value. |
| | | | |
| | Several of our students in this class are starting a new homeschooling publication, which will soon be announced on ''Conservapedia.com'' and available online. A student who took this class in 2007 and who is now excelling in college is publishing this observation: | | Several of our students in this class are starting a new homeschooling publication, which will soon be announced on ''Conservapedia.com'' and available online. A student who took this class in 2007 and who is now excelling in college is publishing this observation: |
| Line 242: |
Line 242: |
| | ==Review== | | ==Review== |
| | | | |
| − | Normal profit: | + | At the beginning of this lecture, there was a quote by a student who took this course in 2007. She referred to "Austrian economics." What is that? |
| | + | |
| | + | Austrian economics is <define>. |
| | + | |
| | + | Former MIT Professor Paul Samuelson, one of the best-known American economists, passed away on Sunday. He authored the most widely used college textbook on Economics, which focuses more on Macroeconomics (the big picture) than on Microeconomics (individual firms and markets, and the basis of our course). Samuelson was a disciple of the liberal economist John Maynard Keynes discussed in our Lecture Thirteen, but Samuelson did permit some conservative concepts to be included in his textbook and supported tax cuts during the Kennedy Administration in the early 1960s.Normal profit: |
| | | | |
| | The term “normal profit” means “zero economic profits,” which occurs when total revenue equals explicit costs (like cash expenditures) plus implicit costs (like opportunity costs of wasted time). In Figure B (attached), at point A, what kind of profits does the company have: (a) more than a “normal profit”, (b) equal to a “normal profit” or (c) less than a “normal profit.”? | | The term “normal profit” means “zero economic profits,” which occurs when total revenue equals explicit costs (like cash expenditures) plus implicit costs (like opportunity costs of wasted time). In Figure B (attached), at point A, what kind of profits does the company have: (a) more than a “normal profit”, (b) equal to a “normal profit” or (c) less than a “normal profit.”? |
| | | | |
| | Correct mistake in Lecture 12 about shape of Lorenz curve with respect to actual income. | | Correct mistake in Lecture 12 about shape of Lorenz curve with respect to actual income. |
| − |
| |
| − | At the beginning of this lecture, there was a quote by a student who took this course in 2007. She referred to "Austrian economics." What is that?
| |
| − |
| |
| − | Austrian economics is <define>.
| |
| | | | |
| | Knowing and understanding basic concepts are the key to mastering economics exams. Return to page one of this lecture and make sure you understand every concept listed. Return to the lecture in which they were discussed and explained, and reexamine the homework as you have difficulties. Don’t worry about the most difficult concepts discussed in the course, such as the Giffen good. Instead, master the basics and be ready to apply them logically to the final exam. | | Knowing and understanding basic concepts are the key to mastering economics exams. Return to page one of this lecture and make sure you understand every concept listed. Return to the lecture in which they were discussed and explained, and reexamine the homework as you have difficulties. Don’t worry about the most difficult concepts discussed in the course, such as the Giffen good. Instead, master the basics and be ready to apply them logically to the final exam. |
| Line 263: |
Line 263: |
| | | | |
| | Here is a final puzzle to leave you with. What is the impact on quantity of a price ceiling in a competitive industry compared to a price ceiling in a monopoly? If you can answer that correctly, then you have gone a long way to mastering this material. Hint: In which one (competitive v. monopoly) can a clever price ceiling actually increase quantity? Think about it. | | Here is a final puzzle to leave you with. What is the impact on quantity of a price ceiling in a competitive industry compared to a price ceiling in a monopoly? If you can answer that correctly, then you have gone a long way to mastering this material. Hint: In which one (competitive v. monopoly) can a clever price ceiling actually increase quantity? Think about it. |
| | + | |
| | + | == Final Comments == |
| | + | |
| | + | <comments on class> |
| | | | |
| | ==Assignment== | | ==Assignment== |